Supply Wave Hits South Carolina’s Industrial Market Just As Demand Cools

After years of increasing demand and dwindling availability, a wave of new industrial supply is beginning to boost vacancy and availability rates across South Carolina. A record 11.4 million square feet of industrial space was completed in the state in the first quarter of 2023, and an additional 40 million square feet are under construction. That construction, combined with slowing demand, has pushed the statewide availability rate for industrial space to 9.5%, the highest level seen since 2017 and more than a 3.5 percentage point increase since record lows of 5.9% set in the first quarter of 2022.